Current:Home > InvestGas prices are on the rise again. Here's where experts say they are going next. -Elevate Capital Network
Gas prices are on the rise again. Here's where experts say they are going next.
View
Date:2025-04-16 15:56:45
Budget-conscious motorists may want to fill up sooner rather than later, as prices at the pump are likely headed higher in the near term.
The approach of the peak driving season and the annual switch by refineries to more costly summer gasolines has driven up the national average for unleaded to $3.63, according to AAA.
Prices have been edging higher, with motorists on average paying six cents more per gallon than a week ago and 23 cents more this time last month. Still, the cost of filling up is in line with where motorists and their wallets stood a year ago, when a gallon of unleaded came to $3.61, AAA data shows.
"They are following a similar pattern to last year — maybe they rose a little quicker" due to the global conflicts roiling the oil patch, as well as a bump in demand due to people driving to prime viewing spots to see the solar eclipse, Andrew Gross of AAA told CBS MoneyWatch.
"This is a weird time because we have two wars going on, and the oil market is very wary of that," said Gross. "The oil market is very volatile and doesn't like the potential for bad news, or any worries that the war could widen to include oil-producing countries," he said.
The cost of gas proved to be a large factor in the surprise jump in inflation last month — a trend that is likely to persist in April, experts told CBS MoneyWatch. Paying to keep vehicles running and a roof over one's head accounted for more than half the March rise in the consumer price index, which rose 3.5% last month from a year ago. Gas prices increased 1.7% from February to March, the government data released on Wednesday showed.
Why are gas prices rising?
Underlying the higher costs of gas are routine factors including refinery maintenance, the switch to summer gasoline and rising demand.
"The West Coast is likely to see gas prices continue to jump, and in a week or so, will be joined by the mid-Atlantic and Northeast states as they wrap up the transition to summer gasoline," GasBuddy noted Monday in a blog post.
Domestic supply is also impacted as refineries take advantage of milder weather conditions to do necessary maintenance. "Refineries are so dangerous, you have to maintain these places, as there are a million things that can go wrong," said Gross. "They don't like extreme heat or cold, so spring and fall are a sweet spot for refineries and workers. You don't want anyone dealing with petrochemicals in 100 degrees."
Added to the mix are geopolitical factors, including the Russian-Ukraine war and Israel's war against Hamas in the Gaza Strip, which has spurred the price of oil to six-month highs.
Anytime crude is trading in the mid-80s it starts to put pressure on domestic gas prices, as oil is the main ingredient, according to AAA's Gross, who noted West Texas Intermediate's return Friday to above $87 a barrel. "That's an uncomfortable area for gasoline prices, as it accounts for 60% of what we pay at the pump," he said.
U.S. intelligence that Iran is preparing to retaliate for the Israeli attack early last week on an Iranian consulate in Syria is among the developments keeping the global commodities market on edge.
Defense Secretary Lloyd Austin has urged Ukraine against further attacks on Russian oil refineries, citing the risk to global energy markets, the Biden administration official told Congress on Wednesday.
Gas prices are averaging $5.44 a gallon in California and at or topping four bucks a gallon in seven states, including Alaska, Arizona, Hawaii, Illinois, Nevada, Oregon and Washington, according to AAA. The least expensive gas can be found in Arkansas, Colorado, Mississippi, where a gallon is averaging under $3.20.
- In:
- Gas Prices
Kate Gibson is a reporter for CBS MoneyWatch in New York.
veryGood! (686)
Related
- Taylor Swift Eras Archive site launches on singer's 35th birthday. What is it?
- North West's Custom Christmas Gift Will Have You Crying Like Kim Kardashian
- Hey, that gift was mine! Toddler opens entire family's Christmas gifts at 3 am
- American scientists explore Antarctica for oldest-ever ice to help understand climate change
- Eva Mendes Shares Message of Gratitude to Olympics for Keeping Her and Ryan Gosling's Kids Private
- Want to run faster? It comes down to technique, strength and practice.
- The Indicators of this year and next
- Want to run faster? It comes down to technique, strength and practice.
- Retirement planning: 3 crucial moves everyone should make before 2025
- Pregnant 18-year-old who never showed for doctor's appointment now considered missing
Ranking
- Behind on your annual reading goal? Books under 200 pages to read before 2024 ends
- NFL power rankings Week 17: Ravens overtake top spot after rolling 49ers
- Need a healthier cocktail this holiday season? Try these 4 low-calorie alcoholic drinks.
- Man trapped for 6 days in wrecked truck in Indiana rescued after being spotted by passersby
- Realtor group picks top 10 housing hot spots for 2025: Did your city make the list?
- What is Boxing Day? Learn more about the centuries-old tradition
- Derek Hough, Hayley Erbert celebrate 'precious gift of life': How the stars are celebrating Christmas
- Health workers struggle to prevent an infectious disease 'disaster in waiting' in Gaza
Recommendation
Daughter of Utah death row inmate navigates complicated dance of grief and healing before execution
Stock market today: Global shares climb, tracking advance on Wall Street
Offshore wind in the U.S. hit headwinds in 2023. Here's what you need to know
Well-intentioned mental health courts can struggle to live up to their goals
Most popular books of the week: See what topped USA TODAY's bestselling books list
Teenager Najiah Knight wants to be the first woman at bull riding’s top level. It’s an uphill dream
Fentanyl is finding its way into the hands of middle schoolers. Experts say Narcan in classrooms can help prevent deaths.
Argentina’s new president lays off 5,000 government employees hired in 2023, before he took office